Bitcoin mining company HUT had an extended pocket pivot a few days ago but has since pulled back to its 10dma making it actionable. HUT is a leading company in the space. From Anthony Pompliano:
"Hut 8 has just over 9,000 bitcoin on their balance sheet, yet they have less than 100 million shares outstanding. This means the company has low outstanding share count and they appear to have very low dilution year-to-date compared to other bitcoin-related publicly-traded companies.
Low share count. Disciplined treatment for equity owners. Lots of bitcoin on the balance sheet. All good signs in my opinion.
Next, we have to look at the leadership team. Hut 8 is led by Asher Genoot, who has done a great job of creatively structuring deals to give the corporation immense optionality in the future. Take their recent Bitmain deal as an example.
Bitmain signed a contract that will drive approximately $135 million in annual run-rate revenue to the business. That deal brings 15 exahash in bitcoin mining to Hut 8 facilities. But here is the catch — if bitcoin’s price goes down, Hut 8 gets paid as if they are a classic energy provider selling Bitmain energy. If bitcoin’s price goes up, Hut 8 can buy the ASIC machines from Bitmain at a pre-agreed, fixed price."
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